The Securities and Exchange Commission of Pakistan (SECP) has directed 77 listed companies on the defaulter segments of the three stock exchanges to take immediate steps to rectify defaults relating to the listing regulations of the stock exchanges within 14 days.
Various defaults committed by the aforesaid companies include failure to hold two consecutive annual general meetings, failure to pay outstanding annual listing fee, failure to pay penalties imposed or any other dues payable to stock exchanges and failure to join the Central Depository System (CDS).
The measure is aimed at enhancing the rights of minority shareholders and promoting a culture of regulatory compliance. In case of non-compliance with the directions of the SECP, the company or its chief executive and directors of the company shall be liable for action which includes penalties of up to Rs 100 million in case of an individual and up to Rs 200 million in case of a company. The failure to rectify the default can even lead to winding up/liquidation of a company, the SECP warned.
